6-419
180.
Data for March for Lazarus Corporation and its two major business segments, North and
South, appear below:
Sales revenues, North
$380,000
Variable expenses, North
$213,000
Traceable fixed expenses, North
$65,000
Sales revenues, South
$230,000
Variable expenses, South
$104,000
Traceable fixed expenses, South
$25,000
In addition, common fixed expenses totaled $156,000 and were allocated as follows:
$84,000 to the North business segment and $72,000 to the South business segment.
The contribution margin of the South business segment is:
6-420
181.
Data for March for Lazarus Corporation and its two major business segments, North and
South, appear below:
Sales revenues, North
$380,000
Variable expenses, North
$213,000
Traceable fixed expenses, North
$65,000
Sales revenues, South
$230,000
Variable expenses, South
$104,000
Traceable fixed expenses, South
$25,000
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
In addition, common fixed expenses totaled $156,000 and were allocated as follows:
$84,000 to the North business segment and $72,000 to the South business segment.
A properly constructed segmented income statement in a contribution format would show
that the segment margin of the North business segment is:
6-421
6-422
182.
Data for March for Lazarus Corporation and its two major business segments, North and
South, appear below:
Sales revenues, North
$380,000
Variable expenses, North
$213,000
Traceable fixed expenses, North
$65,000
Sales revenues, South
$230,000
Variable expenses, South
$104,000
Traceable fixed expenses, South
$25,000
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
$102,000
Common fixed expenses
Net operating income
In addition, common fixed expenses totaled $156,000 and were allocated as follows:
$84,000 to the North business segment and $72,000 to the South business segment.
A properly constructed segmented income statement in a contribution format would show
that the net operating income of the company as a whole is:
6-423
183.
Rollison Corporation has two divisions: Retail Division and Wholesale Division. The
following data are for the most recent operating period:
Total Company
Retail Division
Wholesale Division
Sales
$545,000
$278,000
$267,000
Variable expenses
$146,820
$66,720
$80,100
Traceable fixed expenses
$267,000
$152,000
$115,000
The common fixed expenses of the company are $76,300.
The Retail Division’s break-even sales in dollars is closest to:
6-424
184.
Rollison Corporation has two divisions: Retail Division and Wholesale Division. The
following data are for the most recent operating period:
Total Company
Retail Division
Wholesale Division
Sales
$545,000
$278,000
$267,000
Variable expenses
$146,820
$66,720
$80,100
Traceable fixed expenses
$267,000
$152,000
$115,000
The common fixed expenses of the company are $76,300.
The Wholesale Division’s break-even sales in dollars is closest to:
6-425
185.
Rollison Corporation has two divisions: Retail Division and Wholesale Division. The
following data are for the most recent operating period:
Total Company
Retail Division
Wholesale Division
Sales
$545,000
$278,000
$267,000
Variable expenses
$146,820
$66,720
$80,100
Traceable fixed expenses
$267,000
$152,000
$115,000
The common fixed expenses of the company are $76,300.
The company’s overall break-even sales in dollars is closest to:
6-426
186.
Sosinski Corporation has two divisions: Domestic Division and Foreign Division. The
following data are for the most recent operating period:
Domestic
Division
Foreign
Division
Sales
$300,000
$261,000
Variable expenses
$129,000
$83,520
Traceable fixed expenses
$102,000
$109,000
Common fixed expense
$42,000
$36,540
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Domestic Division’s break-even sales is closest to:
6-427
187.
Sosinski Corporation has two divisions: Domestic Division and Foreign Division. The
following data are for the most recent operating period:
Domestic
Division
Foreign
Division
Sales
$300,000
$261,000
Variable expenses
$129,000
$83,520
Traceable fixed expenses
$102,000
$109,000
Common fixed expense
$42,000
$36,540
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Foreign Division’s break-even sales is closest to:
6-428
188.
Sosinski Corporation has two divisions: Domestic Division and Foreign Division. The
following data are for the most recent operating period:
Domestic
Division
Foreign
Division
Sales
$300,000
$261,000
Variable expenses
$129,000
$83,520
Traceable fixed expenses
$102,000
$109,000
Common fixed expense
$42,000
$36,540
Sales
Variable expenses
Traceable fixed expenses
Common fixed expense
The common fixed expenses have been allocated to the divisions on the basis of sales.
The company’s overall break-even sales is closest to:
6-429
189.
Keefe Corporation has two divisions: Western Division and Eastern Division. The following
report is for the most recent operating period:
Total Company
Western Division
Eastern Division
Sales
$396,000
$276,000
$120,000
Variable expenses
150,600
124,200
26,400
Contribution margin
245,400
151,800
93,600
Traceable fixed expenses
153,000
94,000
59,000
Segment margin
92,400
57,800
34,600
Common fixed expense
75,240
52,440
22,800
Net operating income
$17,160
$5,360
$11,800
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Western Division’s break-even sales is closest to:
6-430
190.
Keefe Corporation has two divisions: Western Division and Eastern Division. The following
report is for the most recent operating period:
Total Company
Western Division
Eastern Division
Sales
$396,000
$276,000
$120,000
Variable expenses
150,600
124,200
26,400
Contribution margin
245,400
151,800
93,600
Traceable fixed expenses
153,000
94,000
59,000
Segment margin
92,400
57,800
34,600
Common fixed expense
75,240
52,440
22,800
Net operating income
$17,160
$5,360
$11,800
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Eastern Division’s break-even sales is closest to:
6-431
191.
Keefe Corporation has two divisions: Western Division and Eastern Division. The following
report is for the most recent operating period:
Total Company
Western Division
Eastern Division
Sales
$396,000
$276,000
$120,000
Variable expenses
150,600
124,200
26,400
Contribution margin
245,400
151,800
93,600
Traceable fixed expenses
153,000
94,000
59,000
Segment margin
92,400
57,800
34,600
Common fixed expense
75,240
52,440
22,800
Net operating income
$17,160
$5,360
$11,800
The common fixed expenses have been allocated to the divisions on the basis of sales.
The company’s overall break-even sales is closest to:
6-432
192.
Keefe Corporation has two divisions: Western Division and Eastern Division. The following
report is for the most recent operating period:
Total Company
Western Division
Eastern Division
Sales
$396,000
$276,000
$120,000
Variable expenses
150,600
124,200
26,400
Contribution margin
245,400
151,800
93,600
Traceable fixed expenses
153,000
94,000
59,000
Segment margin
92,400
57,800
34,600
Common fixed expense
75,240
52,440
22,800
Net operating income
$17,160
$5,360
$11,800
The common fixed expenses have been allocated to the divisions on the basis of sales.
What is the company’s overall net operating income if it operates at the break-even points
for its two divisions?
6-433
193.
Pevy Corporation has two divisions: Southern Division and Northern Division. The
following data are for the most recent operating period:
Total Company
Southern
Division
Northern Division
Sales
$332,000
$200,000
$132,000
Variable expenses
$92,400
$66,000
$26,400
Traceable fixed expenses
$170,000
$101,000
$69,000
Common fixed expense
$36,520
$22,000
$14,520
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Southern Division’s break-even sales is closest to:
6-434
194.
Pevy Corporation has two divisions: Southern Division and Northern Division. The
following data are for the most recent operating period:
Total Company
Southern Division
Northern Division
Sales
$332,000
$200,000
$132,000
Variable expenses
$92,400
$66,000
$26,400
Traceable fixed expenses
$170,000
$101,000
$69,000
Common fixed expense
$36,520
$22,000
$14,520
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Northern Division’s break-even sales is closest to:
6-435
195.
Pevy Corporation has two divisions: Southern Division and Northern Division. The
following data are for the most recent operating period:
Total Company
Southern
Division
Northern Division
Sales
$332,000
$200,000
$132,000
Variable expenses
$92,400
$66,000
$26,400
Traceable fixed expenses
$170,000
$101,000
$69,000
Common fixed expense
$36,520
$22,000
$14,520
The common fixed expenses have been allocated to the divisions on the basis of sales.
The company’s overall break-even sales is closest to:
6-436
196.
Pevy Corporation has two divisions: Southern Division and Northern Division. The
following data are for the most recent operating period:
Total Company
Southern Division
Northern Division
Sales
$332,000
$200,000
$132,000
Variable expenses
$92,400
$66,000
$26,400
Traceable fixed expenses
$170,000
$101,000
$69,000
Common fixed expense
$36,520
$22,000
$14,520
The common fixed expenses have been allocated to the divisions on the basis of sales.
What is the company’s overall net operating income if it operates at the break-even points
for its two divisions?
6-437
197.
Criblez Corporation has two divisions: Blue Division and Gold Division. The following
report is for the most recent operating period:
Total Company
Blue Division
Gold Division
Sales
$431,000
$106,000
$325,000
Variable expenses
154,810
54,060
100,750
Contribution margin
276,190
51,940
224,250
Traceable fixed expenses
177,000
38,000
139,000
Segment margin
99,190
$13,940
$85,250
Common fixed expense
68,960
Net operating income
$30,230
The Blue Division’s break-even sales is closest to:
6-438
198.
Criblez Corporation has two divisions: Blue Division and Gold Division. The following
report is for the most recent operating period:
Total Company
Blue Division
Gold Division
Sales
$431,000
$106,000
$325,000
Variable expenses
154,810
54,060
100,750
Contribution margin
276,190
51,940
224,250
Traceable fixed expenses
177,000
38,000
139,000
Segment margin
99,190
$13,940
$85,250
Common fixed expense
68,960
Net operating income
$30,230
The Gold Division’s break-even sales is closest to: